Aerosoles granted interim approval to hold closing sales at 74 stores

By Caroline Salls

Pittsburgh, Sept. 19 – AGI HoldCo, Inc., which does business as Aerosoles, received interim court approval to conduct closing sales at 84 of its retail stores, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Oct. 18.

As previously reported, Aerosoles said a critical portion of its restructuring is a significant reduction in the number of retail stores it operates in an effort to realign the business with the changing marketplace environment.

The company has already begun the store-closing sales.

Hilco Merchant Resources, LLC is conducting the sales. Under the liquidating agent agreement with Hilco, Aerosoles will pay the agent a fee equal to 1.25% of the gross proceeds of the merchandise sold and 17.5% of the gross proceeds of the sale of furniture, fixtures and equipment.

Tuesday’s order also allows Aerosoles to pay bonuses to store-level and some field employees, provided that the total cost of the bonuses may not exceed 5% of base annual payroll.

The company said it plans to maintain four flagship stores in New York and New Jersey. Customers may also continue to shop online.

Aerosoles is an Edison, N.J.-based global footwear company. The company filed bankruptcy on Sept. 15 under Chapter 11 case number 17-11962.

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